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FAIS Act FAIS Act and Subordinate Legislation
Mr. Simelane is newly employed by 'SA Life (Pty) Ltd', a licensed FSP, and provides advice on long-term insurance policies. His employment contract states he is 'working under supervision'. In terms of the FAIS Act's definitions, what is Mr. Simelane's official regulatory status?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) A Key Individual, as he manages client advice.
- b) A Product Supplier's agent.
- c) A Representative.Correct
- d) An assistant, as he is working under supervision.
Why this is the answer
According to the FAIS Act (Sec 1, Definitions), a 'Representative' is a person appointed by an FSP to render specified financial services. 'Working under supervision' is a condition of appointment for those not yet fully competent, but their regulatory status remains that of a Representative.
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